NPS funds withdrawal time halved: Here's all you need to know

To offer subscribers a better experience, the processing time for withdrawal of funds under the National Pension System (NPS) has been halved by the Pension Fund Regulatory and Development Authority (PFRDA).

According to a notice on the official website of the organisation, the withdrawal time has been reduced to T+2 working/settlement days from T+4, where T represents the day of authorisation of withdrawal request by the Nodal office/Subscriber/ PoP. This means faster execution of transactions under the NPS.

Subscribers associated with Protean eGov Technologies Ltd CRA whose requests are authorised up to 10:30 am will see them being settled on a T+2 basis. Furthermore, for all subscribers associated with KFin Technologies Ltd & CAMS CRAs will see all requests authorised up to 11 am being settled on T+2 basis.

Subscribers associated with KFin can seek authorisation for services like annuity withdrawal, superannuation, ERM, one way switch, PFM change request, scheme preference change, partial withdrawal and more. Under partial withdrawal, a subscriber who has been in the NPS for at least three years can withdraw a maximum 25 percent of the contributions made by him/her. The withdrawal can be done three times, if the subscriber receives a maximum of 25 percent of own contributions made between two partial withdrawals, as per the notice. The contribution must exclude returns thereof and employer contribution, if any.

Using a one-way switch, subscribers can transfer funds from Tier II to Tier I accounts. However, the opposite is not allowed.

CAMS subscribers can request for activities like annuity withdrawal, premature exit, exit due to death, superannuation and Tier II withdrawal. View the PFRDA’s circular here .

Those associated with Protean eGov Technologies Ltd. can seek authorisation for activities like family/disability pension, premature exit, exit due to death, re-balancing, superannuation and annuity withdrawal.

The PFRDA has stated that the “timelines are to be considered for working and settlement days. The reduced timelines shall be introduced in a phased manner for other activities in the interest of subscribers.”

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